Here's How Much Interest You Earn On Your Fixed Deposit In Post Office Now

FD Interest Rate: From April 1, the interest rates for most small savings schemes have been cut up by to 140 basis points.

Here's How Much Interest You Earn On Your Fixed Deposit In Post Office Now

FD Interest Rate: A TD small savings scheme now fetches interest at the rates of 5.5-6.7%

Small Savings Scheme FD Rate: From April 1, investment in the Time Deposit (TD) small savings scheme fetches returns to the tune of 5.5-6.7 per cent, compared to 6.9-7.7 per cent in the quarter ended March 31. The Time Deposit scheme is a term or fixed deposit scheme in which the investment is locked in for a fixed period of time and the interest is paid on the investment at regular intervals. The Time Deposit small savings scheme is currently offered in four maturity options, ranging from one year to five years. A TD investment in one- to three-year options fetches a return of 5.5 per cent each, compounded quarterly, while a five-year lock-in gives a higher return of 6.7 per cent.

Here are the interest rates applicable to the four different types of Time Deposit - or fixed deposit (FD) - small savings schemes:

Time Deposit (Fixed Deposit) Maturity PeriodInterest Rate In January-MarchInterest Rate In April-JuneCompounding Frequency
One year6.9%5.5%Quarterly
Two years6.9%5.5%
Three years6.9%5.5%
Five years7.7%6.7%
(Source: dea.gov.in)

The government has lowered interest rates on most small savings schemes by 80-140 basis points (0.8-1.4 percentage point) for the first quarter of financial year 2020-21, according to an official statement. 

Here are the interest rates applicable to other small savings schemes:

InstrumentInterest Rate In January-MarchInterest Rate In April-JuneCompounding Frequency
Savings Deposit4%4%Annually
Five-Year Recurring Deposit7.2%5.8%Quarterly
Senior Citizen Savings Scheme (SCSS)8.6%7.4%Quarterly and paid
Monthly Income Account7.6%6.6%Monthly and paid
National Savings Certificate7.9%6.8%Annually
Public Provident Fund7.9%7.1%Annually
Kisan Vikas Patra7.9% (matures in 113 months)6.9% (matures in 124 months)Annually
Sukanya Samriddhi Account8.4%7.6%Annually
(Source: dea.gov.in)

Currently, the Ministry of Finance offers nine types of small saving schemes, including the 15-Year Public Provident Fund (PPF), the Senior Citizen Savings Scheme (SCSS) and the Sukanya Samriddhi scheme, and revises the interest rates applicable to them on a quarterly basis.